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LJUBLJANA Cushman & Wakefield Global Cities Retail Guide

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LJUBLJANA Cushman & Wakefield Global Cities Retail Guide LJUBLJANA Cushman & Wakefield Global Cities Retail Guide Cushman & Wakefield | Ljubljana | 2019 1 Ljubljana is a picturesque pint-sized city centred round a hilltop castle. It is located on the crossroads of the two main pan- European transport corridors 5 (stretching from Venice to Kiev) and 10 (stretching from Salzburg to Thessaloniki). Ljubljana is the cultural, educational, economic, political and administrative centre of Slovenia with 7.9% registered unemployment rate in March 2019 and an average gross monthly salary of €1,730. Like most countries, Slovenia is experiencing rural to urban migration, and the population of the city and surrounding area is growing slowly. Approximately 50% of Ljubljana’s retail space comprises converted industrial buildings in the BTC retail park. Although the space is compromised in terms of parking, frontage and depth, the park benefitted from being in the right place at the right time when Yugoslavia collapsed, and it is now the largest retail destination in the region with 22 million visitors per year. Ljubljana benefits from cross border shoppers, predominantly from Italy and Croatia. The Ljubljana retail market is centred in three main areas; BTC, the town centre and Rudnik. They are all situated within the ring road that circles the city. There is a shortage of quality retail space in Ljubljana, and only one LJUBLJANA of the four pipeline schemes is making any progress, so it is unlikely that the lack of space will be alleviated in the short term. OVERVIEW Cushman & Wakefield | Ljubljana | 2019 2 LJUBLJANA KEY RETAIL STREETS & AREAS BTC RUDNIK BTC was the largest logistics centre in ex-Yugoslavia and Rudnik can best be described as a big box retail park, and was converted into a retail park approximately 20 years offers one recent purpose built mall on two levels ago. It now consists of over 450 shops selling 10,000 (Supernova), a large Leclerc supermarket with mall, an brands, and over 70 bars and restaurants, occupying over Obi DIY big box, and various other retailers 130,000 sqm. Retailers include Spar, Merkur, Zara, Chicco, accommodated in strip malls. The total retail space Roberto Cavalli, Hugo Boss, Primark, Tommy Hillfiger, comprises approximately 70,000 sqm. There is adequate Calvin Klein, Pal Zileru, DKNY, S.Oliver and Lidl. Some 22 parking in Rudnik, unlike BTC. million visitors are attracted to the park each year. SLOVENSKA STREET The town centre is characterised by quality brands and offers approximately 21,000 sqm of retail space set mainly on Slovenska Street, Čopova, Kongresni Square and Stari trg, a pedestrian street in the old town. The main shopping street, Slovenska cesta, is only 1,400m long and is occupied with many other buildings such as offices, residential, the main post office, the stock exchange etc. Finding vacant premises on Slovenska is very difficult and most brands looking to enter Slovenia with a flagship store in downtown Ljubljana are invariably disappointed. Retailers on Slovenska include Zara, Mango, Nama (a six storey department store), Intersport, local travel agents and bookshops. Slovenska has approximately 90 stores, but most are small, and there are very few internationally recognised brands. Cushman & Wakefield | Ljubljana | 2019 3 LJUBLJANA MARKET OVERVIEW KEY AREAS/ CONSUMER PROFILE MAJOR RETAILERS NEW ENTRANTS TYPICAL RENT RANGE OF UNIT STREETS/SHOPPING PRESENT SIZES CENTERS BTC Wide profile of shoppers Zara, Mango, H&M, Sportina, Gap, PittaRosso, Mango, €15-45/ sqm/ month 30-2,000 sqm Emporium, Spar, Mercator, Springfield, Giorgio Armani Benetton, Tus, Big Bang Beauty, Primark Town centre High affluence shoppers, Nike, Mango, Zara, H&M, Mango, Gap, Springfield €30/ sqm/ month 30-500 sqm students and tourists Emporium, Lush, Swarovski Rudnik Consumers looking for mid- Leclerc, Peek and Cloppenburg, PittaRosso, The Athlete’s foot €8-12/ sqm/ month 30-2,000 sqm range brands and typical big-box Humanic, H&M, Mercator offer such as DIY Cushman & Wakefield | Ljubljana | 2019 4 LJUBLJANA SHOPPING CENTRES CITYPARK, BTC EMPORIUM, CITY CENTRE Citypark is Ljubljana’s premier mall, located in the BTC Emporium is a multi branded fashion store, selling retail park on the city’s ring road. It opened in 2002 with primarily mid market and luxury textiles and accessories. 53,000m2 and was extended twice in 2007 and 2009 to It occupies a 5-storey 5,200m2 historical building in the provide an additional 10,500m2. It comprises 125 stores heart of the old town. It opened in 2010 after a complete which retail predominantly mass-market quality brands refurbishment, with brands including DKNY, Dolce & such as Desigual, H&M and Gap, and a few multibrand Gabbana, Furla, Bally, Boss, Ralph Lauren, Twinset, Ugg, designer stores. Primark opened a 4,250m2 store in Valentino and others. The property was designed by a Citypark on June 13th 2019. The mall is well served with famous Austrian architect in 2012 following an earthquake food and beverage outlets with the upper floor largely that devastated Ljubljana. It is considered one of the most given over to small restaurants offering Thai food, pizzas, beautiful buildings in the city. Balkan specialties and more. There are only two international food brands, Burger King and The Coffee Shop Company from Austria. There is a waiting list for retail space and low turnover of tenants. SUPERNOVA, RUDNIK Supernova opened in 2008, with 35,000m2 and 70 stores. Supernova accommodates the only Peek and Kloppenburg store in Slovenia, along with a Mercator supermarket and mass market and mid brands offering textiles, sportswear, cosmetics and accessories etc.. An extension of 25,000m2 is planned, the anchor tenants are expected to be Zara, Mango, Desigual, Hervis and DM. It is not clear when construction of the extension will go ahead. Cushman & Wakefield | Ljubljana | 2019 5 DEVELOPMENT TO WATCH OUT FOR SHOPPING CENTER ŠIŠKA Total Size (sqm) 32,000 sqm Planned Opening Date 2019 Consumer Profile Mass market ABOUT THE DEVELOPMENT Construction work has started, after 10 years of delays in obtaining planning permission. The project is on schedule and due to open in 2019. SES Shopping centres is the developer, investor and will operate the centre once it opens. It will have 90 shops, restaurants and service providers in 32,000 sqm of leasable area, with 1,600 parking spaces. SES Shopping Centres partially owns, and operates, the Citypark mall and it is expected that there will be no lack of retailers willing to commit to this project. The site is in a good location, on the main ring road, in a densely populated area. It will no doubt provide stiff competition to Mercator Center Šiška, a few hundred metres north. LJUBLJANA NEW DEVELOPMENT WATCH Cushman & Wakefield | Ljubljana | 2019 6 LJUBLJANA FOOD & BEVERAGE There is no shortage of restaurants and Restaurants in Ljubljana can typically be characterised as bars in Ljubljana. Ljubljana’s food and mid-range. Exclusive fine dining is limited to a few establishments such as Strelec, JB, Cubo and Valvasor. beverage sector is not surprisingly Themed restaurants offering ethnic food, such as shaped by the city’s proximity to the Mexican, Argentinian, Thai and Indian have become Mediterranean and the Balkans, whose popular over the last 15 years. cuisines, often fused with classic Global fast food brands are so far limited to McDonald’s Slovenian fare, are very popular. and Burger King, although more market entrants are expected. There are many coffee shops in Ljubljana Most office workers like to enjoy a sit down lunch and offering good quality, cheap coffee, making it difficult for many restaurants offer an affordable daily menu. premium global brands to enter and compete. KEY AREAS CONSUMER FOOD & BEVERAGE RENT FOR 350 SQM PROFILE OPERATORS UNIT PER MONTH Town centre Workers, tourists, Predominantly local operators, €10,500 students McDonald’s Central business district Workers Predominantly local operators €4,200 BTC Shoppers Two main local operators, Teman and €4,200 Kratochwill, McDonald’s, Burger King Rudnik Shoppers Predominantly local operators with the €4,200 exception of McDonald’s Suburbs Local residents Predominantly local operators offering €3,000 typical Slovene fare in "Gostilna" type restaurants Cushman & Wakefield | Ljubljana | 2019 7 JACQUELINE STUART Director S-Invest d.o.o Dunajska 5 1000 Ljubljana Slovenia Tel: +386 (0) 590 75 780 Mob: +386 (0) 41 251 646 [email protected] No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. © 2019 Cushman & Wakefield LLP. 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